Certain unclaimed property holders that previously received unclaimed property letters have until Oct. 22, 2021 to enroll in the Delaware Secretary of State’s (SOS) Voluntary Disclosure Agreement (VDA) program.
Recall that on June 11, 2021, the SOS mailed another round of letters to various businesses identified as ‘likely being out of compliance’ with Delaware’s unclaimed property law. Those letters served as an invitation to enroll in the SOS VDA program. Holders who received the letters were given 60 days to enter into the program before being referred to the State Escheator at the Delaware Department of Finance for examination.
Recently, recipients of the June 11 letters were given additional time to enter into the VDA program due to the enactment of Senate Bill 104, providing significant amendments to the state’s unclaimed property law. Holders who did not respond to the initial invitation were referred to the Delaware Department of Finance. However, instead of issuing immediate audit notices, the Delaware Department of Finance sent follow-up letters on Aug. 18, 2021 with enclosed Delaware VDA enrollment forms. The follow-up letters provide that audit notices will be sent to any holder who has not enrolled in the VDA Program by Oct. 22, 2021. Once the Department of Finance issues a Notice of Examination, the holder is prohibited from enrolling into the VDA program.
Takeaways
Recipients of the June 11, 2021 letters that have not yet taken any action have only days to enroll in the VDA program before being subject to an unclaimed property examination.
These mailings serve as an important reminder for all businesses, especially those incorporated in Delaware, to evaluate their compliance with unclaimed property laws and regulations and proactively mitigate their unclaimed property exposure. It is anticipated that Delaware will continue to regularly issue invitation letters.
Businesses that receive the Delaware letter or have questions about unclaimed property and various state compliance obligations should speak to an unclaimed property specialist. For more information and insights on unclaimed property, please see RSM’s Unclaimed Property Portal.
